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GCE Economics 1989 Question 12

Question 12

Money and Inflation

The indicator of the value of money in the market is

  1. A.the general price level
  2. B.effective supply
  3. C.the equilibrium price
  4. D.effective demand
  5. E.consumers income.
Show the answer and explanation

Answer: A (the general price level)

Explanation

The value of money is what it can buy, which moves opposite to the general price level.